Posted at 12.13.2018
This assignment comprises of an overview of the expanding tendencies in eCommerce by describing what eCommerce is, a set of the types of eCommerce and finally, we will give attention to two types of eCommerce which are mobile commerce and Facebook commerce.
Electronic business (eCommerce) is one of the major influences in the globalization of business. As information technology advancements happened, eCommerce in addition has been greatly found in the entire world trade using information technology. There have also been changes in the task of business ventures due to advancements in technology. Other factors influencing globalization include globalization of capital market segments, reductions in trade barriers and the solution towards International Financial Reporting which has been quite useful to eCommerce companies (Hunter and Smith 2008).
Electronic commerce is the digital exchange (delivery or business deal) of products, services, information, and payments over telecommunications systems. This causes reduced amount of costs of exchange (Kalakota and Whinston, 1996) and provision of upgraded services to customers (Barney, 1991(. Corresponding to literature review, companies have the ability to compete with each other competently and effectively in the nationwide and global markets, through the introduction of the Internet (Schmid et al. , 2001).
In1979, an English man Michael Aldrich designed online shopping to help in trade between consumers and businesses, or even between two businesses. This online shopping was later recognized to be as Electronic digital Business (Tkacz, Ewaryst; Kapczynski, Adrian 2009). From then on, in the past due 1990s, there have been quite vital and quick improvements in eCommerce.
The process in eCommerce includes creating and sustaining online human relationships. This is in essence between an organization and its customers, suppliers, traders, strategic associates, regulators and other staff that are associated to or who support the traditional methods of delivery. (Warkentin, et al. , 2001)
Additional activities of ecommerce are:
Explanation of product information and promotion of products by manufacturers and merchants;
Search for different products and comparisons by consumers;
Interaction between vendor and shippers or banks;
post-purchase customer support and;
Additional activities that are not directly related to the purchase itself.
Modes of E-commerce
Ecommerce serves as a the trade of buying and selling products through the medium of internet (Grandon & Pearson, 2004). You will discover main types of electronic commerce. They are mentioned below:
The first category is business-to-business. This is category has been created through developments in information technology that once was used to talk data among two businesses. Purchasers and vendors, who get excited about this type of trade, receive several advantages. For instance:
Reduced administrative costs
Better flexibility of production which can assure delivery of parts "just-in-time"
Improved quality of products as problems related to quality are lowered because of increase in collaboration between buyers and sellers.
Greater prospects for cooperating with suppliers and distributors
B2B is one the quickest growing sector of e-commerce and gets the biggest value sector of the industry.
The second category is Business-to-Consumer (B2C) e-commerce. This sort of ecommerce will involve trade exchange between businesses and consumers immediately, through online marketing and through distribution of goods and services through the internet. This category is particularly where customers use the setting of internet to purchase goods or services (Pavlou & Fygenson, 2006). B2C is basically a service expanded by the already founded vendors or marketers who sell to the customer through direct means. The concept of B2C ecommerce is the fact that it can be effective and successful if it can help in achieving more customers, provide them good service and achieve more sales by actually spending less onto it.
The third category is consumer-to-consumer (C2C) kind of ecommerce, which is nearly a very big sector of eCommerce. C2C is actually trade between people with other individuals, who wish to either purchase or sell goods or services to each other. This type of trade has been occurring since quite a while, but through the progress of the internet, a variety of markets are suffering from. Types of consumer-to-consumer ecommerce sites include public sale sites such as eBay and Amazon.
Trends in eCommerce
Electronic commerce has already established extremely big affects on the global business environment. But now more emphasis is on traveling with a laptop and the cordless web, by the difference solutions and applications. Corresponding to Mueller-Veerse 1999, mobile commerce focuses on aiding business trades through cellular devices. Deals in mobile business usually involve customers, merchants, bankers, mobile network providers and other entities. Mobile business is a multifaceted process, comprising of some tasks. That is very much like ecommerce. An extensive description of mobile business is that it involves a wide variety of collaborative business methods that happen prior to and after genuine sales dealings (Turban et al. 2002 and Adam et al. 1998). Because of this new trend, lots of issues particularly linked with mobile eCommerce have been approaching. Mobile business can be split into three main categories after merging various market sections (Liebmann, 2000).
Trust is a factor that affects expansion of mobile commerce. Mobile commerce would not grow at a massive scale in supply string management, unless people start trusting the idea of mobile business (Siau & Shen, 2002). Thus users have to be assured that mobile orders are safe which posting of financial trades over wireless devices is shielded.
The legalities that impact mobile business include issues of managing internet taxation, controlling denouncement, maintaining of personal privacy and safety of intellectual property. They are all comparable to problems with ecommerce (Dietel, Dietel & Steinbuhler, 2001). However, there will be a need to keep extra servers for duties such as security checking, stocking information and perform electronic repayment for cellular devices. This is because at present, calculating resources are very less (Thanh, 2000).
Social marketing (Facebook)
Facebook commerce, at present is in the initial testing phase. Sellers are keeping a trial use of f-commerce. Since, it is an efficient form of trade, it is vital for retailers to add a sales channel to their social approach. The amount of users and quantity of distributed products has been increasing which ultimately shows that F-commerce will be quite beneficial for merchants (Reuter).
To add to this, even sociable shopping through Facebook is attractive and being acknowledged. F-commerce is finding people's attention and can keep increasing. Despite the fact that the concept began quite slow than it was actually thought, but nowadays people are spotting it and even making purchase or deal through social media pages quite pleasantly.
There continues to be a great deal of room for the internet market to expand as there may be need for increase in creativity such as improvement of innovative relations with customers, suppliers, employees and competition. This would help in the making of new models that would task success factors in ecommerce organizations. Thus, entrepreneurs now have different options for developing their business as a result of massive boost in popularity of the Internet.
Part Two: Develop an e Commerce business plan for (Fast cars Ltd)
To compete in the ecommerce market, the business enterprise should understand the success factors that would be pertinent for the reason that market. There has to be formulation of factors which combines the technologies, objectives, approaches, steps, and composition of the business so that value is created for customers. Within this section, we develop an ecommerce business plan that uses the techniques of ecommerce. This plan is Fast vehicles Ltd website.
Fast autos Ltd is a tiny organization operating in Oman. It will be selling cars for the marketplace and purchasing cars from interior and exterior market as well. Fast automobiles will be founded in the beginning of 2014 by Saed and his family. Oman is a peaceful point out strategically positioned in the southern eastern area of the Arabian Peninsula. It overlooks the Arabian Sea, the Gulf of Oman and the Hormuz Strait. The people of Oman are regarded as some of the most friendly and hospitable in the centre East. Oman is ranked 25th out of 140 countries on the Global Serenity Index 2008- which reveals peace, prosperity and economic progress (Global Calmness Index, 2008). Since the 1970's, Oman has a stable government and open up economic system which is why Oman is positioned 3rd out of 17 countries in the centre East/ North Africa region and internationally it is 43rd, with a rating of 67, in the Index of Economic Flexibility 2009. Oman does not have any personal income tax and has a minimal corporate tax. Labour regulations are comparatively flexible and encourage progress of efficiency. It even has low no salary cost of employing a worker. In a study comprising of 157 countries, Oman's overall results are greater than the earth and regional averages (The Heritage Foundation & Wall structure Neighborhood Journal, 2009). Oman is placed 57 out of 181 economies in the 'Convenience of Doing Business' ratings 2009 by the earth Bank (World Bank). In Addition, the government of Oman is willing towards their economic progress and working towards economic diversification.
The country Oman does have demands for a wide variety of quality used cars. Our vision is to market used autos of best quality at competitive prices, be it our showroom or through our website that utilises ecommerce. Our main point of success would be through customer's happy experience of purchasing from our unique offerings of vehicles, that too after coping with our amazing team. Customers' needs would be very important when developing a purchasing environment. Once satisfied by our professional service, customers would come for do it again purchases because of their delightful previous experience and would even refer our company to their friends and family. We also try to improve our working relationships with our auctioneers and local dealers such that it could lead to personal savings for our customers. Our positive forecast of gross margin is greater than the industry average. Thus, a depiction of your business is really as follows:
1. 100% client satisfaction, calculated through research, repetition of customers and referrals.
2. To accomplish and exceed the average profit margin within the first two-years.
3. Consumer self-confidence for selling of cars
4- Buying of cars
6-Create an excellent and truthful environment
7-Deliver order of customer
9-New plan developments
11- Keep up good relations with customers
We believe that it is necessary to keep quality vehicles at a lower cost and generating returns through upsurge in sale of automobiles. Our automobiles would be sold with a restricted warranty of 90 days. The factor of job satisfaction makes a large effect on employees and owners, thus we aim to promote job satisfaction and even good reimbursement to all our employees. Bonus items and commissions would get when employees show effort and good performance. Owners would also get a profit in a just manner.
Target Market Analysis
Our showroom would be situated in the city Muscat, which is the administrative centre of Oman. This would facilitate in offering exclusive car buying experience for customers in Oman and Middle East. Automobiles would be of great quality, with competitive prices. Vehicles could be bought at the showroom or even through our website. Through use of website, the best option car can be picked, whether customer reaches home or at the job. Since customers should pay online, we will maintain our website's security. We will keep up our promise of delivery of car to the customers and deliver an purchased car at the specified address within few hours of ordering.
Our target market will comprise of four categories: students, retired people, young families and singles.
The first category students include high school and college or university/university students. Students need a cost-effective and safe car. They keep price in consideration but also go for style and looks. They are at the main point where they buy autos more often, that might be every 2-3 years. Since they are not fully informed, they might even make rash decisions if they like a car, even paying more for a cheaper car.
The second category retired people require a useful car. Quality and features take priority over price, but would want something to be used for a long time. This category dreams a well-equipped car of good quality, should be comfortable and become reasonably priced.
The third category families require safe and sensible cars. Most will keep price as goal anticipated to constrained costs. They want an automobile for their kids, to do their food and other tasks, go for long journeys and need a car that can last for years. Individuals look around and get home elevators automobiles and then decide on a particular model.
The fourth category singles can be deemed similar to students in conditions of a desire to have stylish automobiles. However, they may be educated and working, with the method of buying a more expensive better quality car.
The Romance with the Customers
The success of your website depends on good client satisfaction of these using our website. This is also associated with relationship with quality of ecommerce system such as trust, support, quality of content and use (Han and Noh, 1999, Jones & Kayworth, 1999). Some also lay down emphasis on assessing the amount of use and how satisfied users and customers are in getting together with ecommerce systems.
It is a quite a significant step to provide support to the client during all phases of a deal, that is pre, after and during deal (Young and Benamati, 2000). This is because after going to our website for the first time, it is a matter of concern for all of us if our customers visit our website again or not.
The assistance and services provided to customers can be of different kinds. These include: suitable facilities for searching, site cleverness (the amount to that your e-commerce system remembers repeated users and helps them in attaining aims), currency converters, calculators, bank account maintenance, checking order/shipment position, FAQs, feedback, repayment alternatives, etc. (Kardaras and Karakostas, 1999; Schubert and Selz, 2001). Client satisfaction is achieved when all phases are satisfying. This would include the connection with the multipart phase of pre-sale including search for home elevators products and services. It also includes experience throughout the purchase process and after-sale stage. The ability of the ecommerce system to help and support users in all these stages is also important. These would include:
Recognize & Advertise for Prospective Customers
Judge Customer Requirements and Expertise to Respond
Organize and Answer Customer Requests
Scan and Obtain Service or product Information at any time
Easy to find requirements of the product or service that is to be bought
Comparison between suppliers offering same good or service
Confirm the Payment and send online conformation
Cross or more selling
Receive Payment and send it to his bank-account online
Select and make online payment at any time
Keep a check with customer and deliver the merchandise or service
Easy to information of inventory
Keep the after deal about his good or service
Obtain the nice or Service
Cross & up offering and Email Updates
There should be improvement of a number of main factors such as performance and service efficiency, selection and value, the appearance and design of the website, advertisement, motivations to purchase, give attention to each customer independently, community interactions, and safeness and regularity. Laying focus on these elements can result in the success of ecommerce. The next brought up are motivations for affecting in e-commerce:
Performance and Service: Quick, easier searching, shopping, and purchasing, and swift transport and delivery
Selection and Value: Attractive product options, competitive prices, promises of satisfaction, and after-sale customer support.
3. Appearance and design: Eye-catching web storefront, various features for shopping, website shopping areas, and multimedia product catalogue pages
4. Basic safety and Reliability: Protection of customer information, safe practices of website ventures, genuine information of product, and consistent fulfilment of order.
There also several basic benefits associated with e-commerce. These include:
Firstly, benefits for Customers
1. Lower Prices-Product costs lower due reduction in phases along the worthiness chain. These business lead to decrease in price of products. A good example is the fact if an organization directly provides to the consumer instead of distributing through a retail shop, they can remove their intermediaries.
2. World-wide Software industry- huge variety of goods and services that are being sold by customer and this too shopping can be carried out on an international scale. At the moment, there are no custom duties applied on products bought and traded internationally electronically (World Trade Company).
3. 24-Hour use
4. Increased variety of Choices-Offers consumers with more varieties and contrast between can be executed promptly.
5. Quicker Delivery-Permits fast delivery of products and services
Secondly, advantages to Businesses
1. Higher Prospective Market Show- Companies are able to reach markets world-wide through the internet, which gives them the opportunity of bettering their market show. Businesses can also attain better economies of size.
2. Low-cost Advertising- when costs of advertisement on the medium of internet and printing or television, is manufactured, advert over internet is smaller. This also will depend on the particulars and scope of the advert.
3. Strategic Benefit-cost of labour, lessened delivery times and costs of management are the strategic benefits of making a small business 'e-commerce enabled'.
Thirdly, Advantages to Society
1. People in underdeveloped or producing countries can to acquire products and services online which were previously unavailable to them.
2. Improves performance, assists with delivery of people services at a lesser cost, and/or makes the quality better.
3. It allows people to travel less for shopping and folks can also home based. This can help in reduced amount of traffic leading to lesser polluting of the environment.
4. Since some products would not need physical space or complete inventory, it could facilitate reduction in price of those products.
The Mix- and Up-selling techniques by eCommerce
Methods of mix- and up-selling are recognised approaches that are being used in marketing. These help in increasing the value of a single sale business deal, increasing self confidence and decreasing the threat of competitors taking over the client. Deighton et al. 1994, p. 61 explain cross-selling as motivating a business's customers who have already purchased its product A to also purchase its product B. This is a technique of offering existing customers the chance to buy other products made available from the seller. Combination selling also includes offering the client products that go with the initial product bought using way. The technique of cross-selling has been seen to be always a basis of competitive gain to a preexisting business and as a way to obtain collaborations that validate an acquisition. Thus, the whole concept of cross-selling is to achieve a bigger talk about of the consumer market by giving for further of the needs and wants of every one customer. Besides, regarding to Cabena et al. 1998 data mining is the procedure of finding out past unknown, appropriate, and useful information from huge databases and then utilising that information to make serious business decisions.
Whilst, up-selling method entails moving towards a far more pricey good that is similar to what the client is thinking of buying. Up-selling is what happens when you make a move or inquiring from a person about what they have bought and then offer them more of the product or you offer more of another product (Stephan Schiffman).
Sales campaign has many advantages, specifically, increase in comes back. Thus, we use these methods, for instance we lay emphasis on motivating customers to buy a car that is just a little used rather than purchasing a vintage car. This technique is utilised when the client has chosen a particular car but has not yet made the actual payment. This technique could also be taken as offering a gain with the purchase, such as offering free insurance with purchase of a certain car.
Best practice websites and our website.
The market in Oman, specifically related to trade of autos, is quite dynamic. A lot of the trade is through the way of providing and purchasing through the showroom. Customers usually avoid orders of cars online. However, there has been an improvement in deal, as the firm global automotive in Oman has began sale of new and used cars through ecommerce. Zubair Automotive Group LLC is an example of such trade, who sell new Mitsubishi automobiles.
We consider that that omancers. net is the most likely website (Internal) for sale of used automobiles in Oman.
As globalisation has increased and trading internationally is becoming easier, reselling of cars can even be done internationally. You will discover two well recognized websites, outside Oman, which are eBay and Amazon, by which vehicles can be bought online.
Consequently, our website calls for into consideration all the aspects of ecommerce that people have learnt. These especially include fast and simple usage of information about cars at any time the customer desires.